They are 1) Specialty/Premiumization, 2) Value Consciousness, 3) Health & Wellness 3.0 and Sensorial/Global Flavor Experiences. He explained that these trends are assisting with the success of “challenger brands,” which are brands that are neither the market leader nor a niche brand. They are brands with the intent to bring change to the industry.
“This is the year for ‘challenger brands’ to make their mark,” said Choi. “And, ingredient transparency and global flavors are growing. There’s a demand for authenticity.”
The wellness trend also has a new spin. The trend is focusing on GLP-1 friendly foods, functional foods and non-alcoholic adult beverages. While these products can all be classified as mainstream, many of them prefer to play in the specialty space. They have a premiumized flair to them, which appeals to both upper class and lower class income households.
Indeed, the U.S. specialty food sector has a broad-based appeal. It generated $207 billion in total sales in 2023, according to the Specialty Food Association (SFA), representing a 149% increase over the past decade. Choi said that growth will continue.
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A combination of emotional need states, higher income spending and the quality/health halo associated with specialty foods is driving sales. These foods are affordable luxuries to lower-income households. They provide elevated comfort. When these consumers feel the need to save, they shop private label. This is why mainstream brands are hurting.
“The perception of private label has really changed,” said Choi. “Private label is currently about 20% of all food and beverage sales in the U.S. It will be 30% in five years.”
He also explained how international retailers are gaining ground as a result of shifting demographics. This is a key driver of global flavors. It’s all about authenticity in terms of recipes, ingredient sourcing and retailing. Mediterranean, in particular, is trending, thanks to the likes of fast-casual restaurant such as Cava, which Choi described as “the Chipotle of this generation.” Cava is fueling consumer interest in feta cheese, which was very prominent at the show.
Sunny Khamkar, cofounder and CEO of MenuData, also spoke during this session. “Functional ingredients are redefining food and beverage,” he said. “Consumers are looking for ‘real’ ingredients.”
Let’s start with the one dairy alternative. New milkadamia Flat Pack Organic Oat Milk is a pack of 2-D printed sheets of oat milk, which cut packaging waste by 94% and weight by 85%. Each pack contains eight sheets, with each yielding 8-ounces of beverage when dissolved for 30 seconds in water. This pre-cycled product significantly reduces ecological costs by minimizing transportation bulk and packaging, shifting the focus from post-consumer waste management to proactive reduction, allowing consumers to make a direct positive impact on the planet, according to the company. The concept is debuting this month.
Another noteworthy innovation is Dubai chocolate. The original version was first created by Fix Dessert Chocolatier in Dubai in 2021 and took off last year on social media. Today there are a growing number of me-too versions entering the market. It’s made with milk chocolate filled with a sweet cream made from pistachios and finely chopped kadayif, an Arabic pastry. Might Dubai chocolate make an interesting flavor profile for ice cream, yogurt or even flavored milk?
“When I mistakenly discovered the beauty, the smell and the flavor of this solid version of brown butter, I knew I had to spread ‘the butter,’” said Lisa Herlinger, founder. “I am committed to using grass-fed butter, known for its higher levels of beta carotene, which is also responsible for the butter’s beautiful yellow appearance. Then I use traditional techniques to cook and brown it to perfection, creating a consistently delicious end product. I’m actually taking a beloved basic ingredient—butter--and making it kinda ‘fancy.’ I like to say that we’re a humble character living a luxurious--or buji--lifestyle.”
Bungay Butter from Fen Farm Dairy in the U.K., believes the time is right to start exporting its specialty butter to the U.S. The company’s story and butter-making process are definitely an impressive read you can find HERE. This is the type of story today’s consumers crave.
It’s a cultured butter made with raw milk from grass-fed Montbéliarde and Friesian cows. It’s a handmade process that starts by souring the cream with lactic bacteria, followed by churning and hand-paddling with traditional scotch “butter hands” made from wood. It’s a true farmhouse butter and fits the bill of being an affordable luxury.
Dairy desserts are also affordable luxuries. Add in authentic global flavors, and you have a winner.
Rachelli, a brand of Emmi Dessert Italia, part of the Emmi Group, is rolling out tiramisu and cannoli kits to the U.S. marketplace. The company also has a fresh, ready-to-eat refrigerated tiramisu in a glass jar. The refrigerated product flags that it is made with mascarpone and Italian milk.
Pastazerts are an innovative twist on a classic Italian entree. The New York City-based company was founded in 2023 by Stephanie Berwick. Her concept--chocolate ravioli-- came to life at the World Food Championships several years ago. It is chocolate pasta filled with creamy cheese and other sweet flavors, such as strawberry cheesecake.
Authentic Japanese desserts had a large presence at the Winter Fancy Food Show. Monteur Co., is trying to grow its presence in the U.S., and is rolling out a new spin on mochi. It’s the Mochi Rollcake. A sponge cake is rolled around a sweetened condensed milk-based chewy mochi filling. The product is sold frozen but should be consumed thawed at refrigerated temperature. Varieties are chocolate, matcha, strawberry and vanilla.
Maeda-en wants to expand its presence beyond Asian retailers and specialty shops along the West Coast. The company manufactures its sherbets in the U.S. but also uses authentic ingredients from abroad. For example, The Yuzu Citrus Sherbet is made with Japanese yuzu juice, which when harvested is squeezed and quickly frozen without any additives to preserve the subtle sweet, tart aromatic flavors.
New Frost Buttercream is all about “Defrost, Whip, Frost!” This small-batch, all-natural, perishable frosting is made with only nine simple ingredients, and two of them are dairy: butter and skim milk. The product is sold, distributed and stored in the freezer until ready to use. Then it gets defrosted (on counter or in microwave). The home baker should empty the container into a mixer and whip it for 5 to 10 minutes. (Initial separation is normal. Just keep whipping until fluffy and smooth.)
And lastly, UpStar Nutrition Inc., showcased its new line of indulgent frozen desserts called ‘ndulge. Set to launch in May 2025, ‘ndulge offers health-conscious consumers a delicious alternative to traditional ice cream. This product will be a Daily Dose of Dairy this coming week. You can find out more about what makes this product so special, beyond the fact that it is delish!
“In a world where sugary temptations are everywhere, providing a healthier alternative without sacrificing flavor is crucial,” said Chris Spencer, chief executive officer. “Our new desserts meet the growing consumer demand for tasty, better-for-you options that fit their dietary needs.”
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